Yahoo Finance Did OncoCyte Corporation (NYSEMKT:OCX) Insiders Buy Up More Shares?
We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in OncoCyte Corporation (NYSEMKT:OCX).
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.
Check out our latest analysis for OncoCyte
The Last 12 Months Of Insider Transactions At OncoCyte
The CEO, President & Director Ronald Andrews made the biggest insider purchase in the last 12 months. That single transaction was for US$104k worth of shares at a price of US$2.37 each. We do like to see buying, but this purchase was made at well below the current price of US$5.92. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
OncoCyte insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$1.75. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does OncoCyte Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that OncoCyte insiders own 6.7% of the company, worth about US$35m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At OncoCyte Tell Us?
The fact that there have been no OncoCyte insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in OncoCyte and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing OncoCyte. Case in point: We've spotted 5 warning signs for OncoCyte you should be aware of, and 2 of them are a bit concerning.
But note: OncoCyte may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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